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Tesla CEO Elon Musk Says Bitcoin is Brilliant, Better than Fiat Currency for Value Transfer

February 24, 2019
Saad Mohammad


Tesla CEO Elon Musk Says Bitcoin is Brilliant, Better than Fiat Currency for Value Transfer

Bitcoin and other cryptocurrencies have built numerous admirers over the past decade thanks to their features and the benefits they offer. The latest public figure – celebrity, in fact – to publicly speak about his admiration for Bitcoin is Elon Musk, the founder and CEO of Tesla and SpaceX. Mr. Musk believes that the leading cryptocurrencies can offer improved alternatives to current conventional forms of money.

Musk Admires Bitcoin but is not Ready to Venture into Crypto Himself

Elon Musk made this assertion during a podcast interview with investment firm ARK Invest on Feb. 19. The electric and autonomous vehicle entrepreneur talked about the future of his companies and how regulation should work to ensure safety in the emerging industry.

Mr. Musk was specifically asked about his thoughts on Bitcoin and cryptocurrencies in general. He replied that Bitcoin’s structure is brilliant and has a future not only in the world of finance but also in other sectors of the global economy. “It [cryptocurrency] bypasses currency controls. Paper money is going away. And crypto is a far better way to transfer values than a piece of paper, that’s for sure,” he said.

Despite his admiration for cryptocurrencies, he doesn’t see his companies venturing into the budding sector just yet. He pointed out that some aspects of the crypto industry are keeping him and his companies from becoming involved and using the technology themselves at this point. Mining Bitcoin is known to consume a tremendous amount of computing power and electricity, and this is something that Musk is not particularly impressed with. He stated that for a company that is aiming to boost the global adoption of sustainable energy, it might not be a good use of Tesla’s resources to get involved in crypto and blockchain technology now. “It’s very energy intensive to create Bitcoin at this point,” he added.

This is not the first time that the high-profile CEO has made remarks about Bitcoin. In October 2018, he made a mysterious tweet about purchasing Bitcoin, leading to speculation on social media that he will soon venture into the crypto sector. However, he stated during that interview that the tweet was a joke.

Elon Musk has been impersonated several times on twitter by scammers who try to use his popularity in crypto “give-away” schemes. He noted that he is yet to hold any crypto, so he has nothing to give away at this point. He said that Bitcoin and Ethereum scammers were so rampant on Twitter that he decided to join in, and he said at one point, “Wanna buy some Bitcoin?”

Bitcoin Continues to Gain Recognition From Famous Figures

Bitcoin has gained popularity over the past decade and has been hailed as an innovative technology by entrepreneurs and technologists across the board. Bill Gates, the co-founder of Microsoft, once told Bloomberg that Bitcoin is exciting since it shows how cheap it can be. Cryptocurrency is also better than regular fiat currencies due to the fact that you don’t have to be physically in the same location to transact with it, he added. The capacity to handle large transactions is another feature of Bitcoin that Bill Gates was impressed with.

Richard Branson, the founder of Virgin Galactic and 400 other businesses, is confident that Bitcoin will triumph in the long run despite the challenges it faces from banks and regulators all over the world. Al Gore, former Vice President of the United States, thinks that Bitcoin’s algorithm which allows decentralization is impressive and will be very valuable moving forward.

Elon Musk making favorable comments about Bitcoin and other cryptocurrencies implies that he views the technology as worthy of the hype it has received. Even though he is hesitant to join the crypto bandwagon at this time, he may decide to create his own cryptocurrency, similar to the recently launched JPM Coin by popular US bank JP Morgan Chase.

There is still a long way to go before crypto achieves massive adoption but people such as Elon Musk making favorable remarks about this emerging market indicate that crypto, in general, will likely receive the popular backing, funding, and adoption it needs to gain the traction and mass adoption that early enthusiasts have known is just around the corner.